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State lawmakers want to buy out pensioners

Written By: Cole Lauterbach, INN News Reporter
 March 1, 2016
 
 Illinois lawmakers want to give state workers nearing retirement the same choice it gives lottery winners: take a lump-sum now or a yearly annuity.
Sponsors of a new set of bills brought before the House Personnel and Pensions Committee on Monday say it would be one way to cut down on Illinois’ crushing $111 billion pension debt.

If passed, the bills — which have different mechanisms — would let employees in the twilight of their careers with the state choose either a smaller, lump-sum buyout immediately upon retirement or take their normal pensions over time.

Committee members were curious of how the buyouts would be funded and structured.

Representatives with the state’s retirement systems said they were open to the changes, and communicating and educating with the state’s future pensioners would be the key.

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